Numbers may add up for casino, Tiverton

Marcia Pobzeznik Daily News staff writer

Wednesday

Nov 29, 2017 at 12:01 AMNov 29, 2017 at 9:00 AM

TIVERTON — The new Twin River-Tiverton casino, expected to open in October 2018 and replace Newport Grand slots parlor, would bring in more than three times the amount of revenue for the owners than is being realized in Newport, and twice as much tax revenue to the state.

The bottom line depends on whether there will be competition from a casino that has been proposed for nearby Taunton, Massachusetts, according to a new economic impact report.

The report, prepared by Spectrum Gaming Group of New Jersey, an independent research firm, was released this week by Twin River Management Group.

Twin River, owner of Twin River Casino in Lincoln and Newport Grand as well as some gaming venues in the West, is building a $140 million casino in Tiverton to replace Newport Grand. It will have 1,000 slot machines, about the same as Newport Grand, and 32 table games. An 84-room hotel is being built adjacent to it.

Newport Grand does not have live table games; Newport voters twice rejected proposals to add them to that gaming facility.

The report notes that Newport Grand’s net terminal income has declined by 43 percent, or $34 million, from its peak of $79 million in 2005, as compared to 2015.

In 2015, the owners of Newport Grand retained $19.8 million after paying $27.7 million in taxes and other third-party payments. Salaries of $6.7 million were paid to 164 workers whose average pay was $41,049, and full-time equivalent was $51,000.

In contrast, the Tiverton casino, with competition from a casino in Taunton, would pay $52.9 million in taxes and third-party payments, and owners would retain $52.6 million. The salaries for 561 workers would be $23.6 million and average $42,000, with a full-time equivalent earning $56,000.

Without competition from Taunton, owners would retain $70.6 million after paying $71 million in gaming taxes and other third-party payments. Some $27.6 million would be paid to 624 workers who would have an average salary of $42,000, with a full-time equivalent earning $56,000, according to the report.

The report also includes figures from Twin River in Lincoln. Owners retained $297 million in 2015 after paying $305 million in gaming taxes and other third-party payments. It paid $81 million to 1,782 workers that year with average salaries of $45,553, and full-time equivalents making $62,407.

Twin River attorney Mark Russo this week presented the town council with a report on local hires for the new casino and hotel construction project. Russo said 41 construction workers at the site, which is about 34 percent of the total construction workers on the job, live within a 10-mile radius; 13 of them are Tiverton residents.

Some 700 construction jobs over the 14 months of construction will contribute $118 million to the local economy, said Russo. There are five Tiverton vendors who will earn $225,000 over the course of construction, with Aquidneck Island vendors earning twice that amount, or half a million.

“We are pretty proud of the jobs and the money we’ve injected into the community,” Russo said.

The report notes that the new casino will not only help the local and state economies, but should reduce the unemployment rate in Tiverton which is now at 8.1 percent.

“Given the strong propensity of people to seek employment near their homes, it is likely that many Tiverton residents will look to the casino for job opportunities … any local hiring has the potential to greatly reduce the local unemployed population of 719 people,” the report states.

“At a minimum, the operation of a Tiverton casino and the recycling of gaming taxes back through the economy will create 1,391 jobs, $68 million of tax revenue, and $121 million of value added, also called new economic activity or gross state product. The negative impacts of the closure of Newport Grand Casino are less than half the size of the positive impacts of opening a casino in Tiverton, even with competition from a casino in Taunton,” according to the Spectrum report.

Tiverton is expected to receive $3 million in gaming revenue annually and another $1 million in property taxes and other taxes.

Tiverton@NewportRI.com

Never miss a story

Choose the plan that's right for you.
Digital access or digital and print delivery.